Navitas | |
Formerly | IBT Education Pty Ltd |
Company type | Private |
ISIN | AU000000NVT2 |
Industry | Education services |
Founded | 1994 in Perth, Australia |
Founders |
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Headquarters | Level 8 Brookfield Place, 125 St Georges Terrace, Perth, WA , |
Number of locations | over 120 (2017) |
Areas served | |
Key people | |
Services | |
Revenue |
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Total assets |
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Number of employees | 6,046 (2020) |
Parent | BGH Capital |
Subsidiaries |
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Website | www |
Footnotes /references [1] [2] |
Navitas (also known as Navitas Limited, previously known as IBT Education) is an Australian owned for-profit private education services company, owning various private education providers internationally. [3] It is the largest private non-university higher education provider in Australia. [4]
Navitas made A$929.69 million in total sales in 2018, through its various subsidiaries and pathways programs in association with 11 public universities in Australia. [5]
Navitas was established in 1994, as the Perth Institute of Business and Technology (PIBT). The company was co-founded by Rod Jones and Dr Peter Larsen, as a joint venture with Edith Cowan University. Both founders had career backgrounds in education and education administration, and recognised a gap in the tertiary education sector, where international students, despite being equally capable as domestic students, were failing their courses due to lack of support. [6] [7] Following a partnership deal with a university in the United Kingdom in 2000, the company made its first international expansion. [7] Four years onward, following success in this venture and the further establishment of pathways colleges, the company was listed publicly on the Australian Securities Exchange as IBT Education, being the first Australian education company to do so. [7]
In 2005, as Australia's only private education company of its kind at the time, IBT Education acquired the largest private English language teaching (ELT) company in Australia, Australian Centre for Languages (ACL) Pty Ltd. for A$55.7m. [8] Following shareholder approval, the company proceeded with a renaming in 2007, renaming itself from IBT Education Limited, to Navitas Limited, as well as rebranding its public operations to Navitas. [8] Navitas expanded operations into the USA in 2010, through partnerships with the University of Massachusetts and Western Kentucky University. [9] Responding to a favourable financial environment, Navitas moved on acquiring SAE Group, for A$294.3m, in 2011, its largest acquisition so far. [10] Following further success, propelled by the growing international education industry, in 2014, Navitas entered the ASX 100. [11] Subsequently, Forbes placed it 25th in their Most Innovative Growth Companies 2014 list. [12] In 2017, the company launched Navitas Ventures, a corporate venture capital fund. [13]
In 2019, Navitas agreed to a buyout from a consortium of investors, following negotiation throughout 2018 and 2019, where Navitas rejected the initial offer. [14] Following this, the shareholders were informed of the terms of the buyout, at A$5.825 per share (A$2.3 billion total). The investor consortium was led by private equity firm BGH Capital, also consisting of AustralianSuper and the company's founder Rod Jones. [14] This marked the largest-ever acquisition by an Australian private equity firm, by gross value. [15]
As of 2019, the ultimate parent of Navitas Limited is BGH Capital. [16]
The company's subsidiary businesses are categorised under two segments; careers and industry, and university pathways partnerships. [5] These categorisations are used to describe its revenue sources. [5]
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These companies explicitly provide career and industry training to students: [3]
These partnerships are between universities and Navitas, establishing separate pathways colleges, with the university branding for students who would otherwise not meet entry requirements to the university. [17]
In 2017, Navitas launched its venture capital fund, Navitas Ventures, aimed at startups in the educational technology (EdTech) sector. [13]
As of 2021, the Navitas Ventures portfolio contains nine companies: [51]
The company derives revenue from areas which are categorised into three segments, defined by the company structure. [5]
This segment encapsulates pathways programs run by Navitas in partnership with other universities. [13] [11] [52] [53]
University partnerships account for the largest part of Navitas revenue, and was their original revenue source. [7]
This segment includes all career and industry training institutions, such as SAE Institute and Professional & English Programs (PEP). The careers and industry section of the business is a result of Navitas' acquisition of training institutions, such as Australian College of Applied Psychology, SAE Institute, and Australian School of Applied Management. The segment also includes student recruitment services, which provides recruitment services to students such as internships, for those seeking experience internationally. [9]
Prior to 2017, this segment was represented as 2 smaller categories, Professional and English Programs (PEP) and SAE Institute, however was merged. [13]
This segment includes Navitas group's corporate functions. [5]
This table displays the total revenue divided by each segment, [13] [11] [52] [53] before interest, taxes, depreciation, amortisation and impairment. [8]
All dollar figures in this table are in Australian Dollars (AUD), in thousands.
Year | University Partnerships | Careers and Industry | Corporate Functions | Total |
---|---|---|---|---|
2018 [5] | $598,887 | $317,563 | $13,243 | $929,693 |
2017 [13] | $574,129 | $375,054 | $4,321 | $953,504 |
2016 [53] | $635,411 | $368,440 | $4,584 | $1,008,435 |
2015 [52] | $566,340 | $409,459 | $2,432 | $978,141 |
2014 [11] | $499,186 | $374,532 | $2,255 | $875,973 |
2013 [54] | $415,713 | $311,311 | $2,537 | $729,561 |
2012 [55] | $366,674 | $317,975 | $3,497 | $688,146 |
2011 [10] | $372,947 | $265,152 | $3,727 | $641,826 |
2010 [9] | $346,755 | $205,070 | $3,569 | $555,394 |
2009 [9] | $283,419 | $183,773 | $2,644 | $469,836 |
2008 [56] | $209,138 | $132,843 | $1,171 | $343,152 |
2007 [8] | $155,929 | $125,129 | $1,652 | $282,710 |
2006 [8] | $137,178 | $85,475 | $3,393 | $226,046 |
Rod Jones co-founded the company, Initially working in government and university administration. With experience in the industry, and an interest in capitalising on the rapidly growing student market, the founder found initial success upon the company's inception. Rod Jones remained CEO of the company through its expansion, until it was re-privatised by the consortium run by BGH Capital. He was then succeeded by David Buckingham. [7]
On 27th Feb 2018, the board announced that David Buckingham will succeed Rod Jones as CEO after 23 years of service. David Buckingham worked for Navitas since 2016, and was previously CEO of iiNet, an Australian telecommunications provider. [57]
Following the BGH Capital takeover, Scott Jones was appointed CEO in 2019. Scott Jones had worked within Navitas group since 2008, working as CEO for SAE Global, then CEO for Navitas Careers and Industry Division. [3]
For-profit private education has come under scrutiny in many industry journal reports, with Navitas, as Australia's biggest provider in the industry, commonly the subject of discussion.[ citation needed ]
It is suggested by scholars that for-profit private education has several pitfalls. The for-profit model is said to compromise the quality of education, in favour of financial profit. However, the sector provides a pivotal part in many disadvantaged students lives, to provide a second chance, to those who did not have access to traditional tertiary education pathways. [58]
The rapid growth of the private higher education (PHE) industry has been linked in many countries to employers’ changing workforce demands, to preferring workers who can quickly react to technological advancements. In Australia, the cause of this growth has been linked to the inability of the public education sector to accommodate the growing demand of international students. [59]
The foundation of TEQSA in 2011 and subsequent funding towards public tertiary education providers, has further contributed to Navitas and the PHE industry's ability to grow in Australia. [59]
Between April and June 2014, staff at Navitas owned La Trobe Melbourne partook in various strikes. This industrial action was in response to unreasonable negotiation of employment in regards to working conditions, job cuts and job security, between Navitas and the National Tertiary Education Union (NTEU). [60]
The working conditions being contested were the employer's usage of hot-desking and lack of staff space such as lockers. The job security concerns were in regards to more than 60 percent of the university's teaching staff being employed by casual contracts. [61] In response to the strike, the university chancellor refused an open dialogue with the Union, and proceeded with the 350 job cuts. [62]
Following the job cuts, the National Tertiary Education Union submitted an enquiry with the Fair Work Commission, requesting that the Commission assess their dispute with the La Trobe Melbourne (Navitas) enterprise bargaining agreement (EBA). The dispute details the NTEU's belief that Navitas had failed assess its need for casual staff, in the case that many staff employed casually should actually be under fixed-term or on-going contracts, as stated in the EBA. [63] This type of employment is known as sham contracting. [64] The Fair Work Commission expressed that it was not satisfied with Navitas' obligation to assess their casual employment contract validity. [63] The Commission stated that all casual contracts must be re-assessed, and that Navitas must expedite this process, and work with NTEU to fulfil their obligation within the EBA. [65]
La Trobe University is a public research university based in Melbourne, Victoria, Australia. Its main campus is located in the suburb of Bundoora. The university was established in 1964, becoming the third university in the state of Victoria and the twelfth university in Australia. La Trobe is one of the Australian verdant universities and also part of the Innovative Research Universities group.
The National Tertiary Education Union (NTEU) is an Australian trade union for all higher education and university employees. It is an industry union, and the only union working exclusively in the Australian university sector.
The SAE Institute (SAE) and SAE University College (in Australia), formerly the School of Audio Engineering and the SAE Technology College and badged SAE Creative Media Education, is a network of colleges around the world that provides creative media programmes. Founded in 1976 in Sydney, Australia, by Tom Misner, SAE was purchased in 2012 by Navitas Limited, a private Australian education services company. In 2022 Navitas sold SAE operations in the United Kingdom and mainland Europe to AD Education, part of Ardian a France-based independent private equity investment company. Navitas retained its SAE Creative Media Institute operations in Australia, New Zealand, Canada and the US alongside its network of licensed education partners operating under the SAE brand in other parts of the world. In 2023, SAE Creative Media Institute in Australia became a University College.
The Australian Qualifications Framework (AQF) specifies the standards for educational qualifications in Australia. It is administered nationally by the Australian Government's Department of Industry, with oversight from the States and Territories, through the Standing Council of Tertiary Education Skills and Employment. While the AQF specifies the standards, education and training organisations are authorised by accrediting authorities to issue a qualification.
The Victorian Tertiary Admissions Centre (VTAC) is an independent shared admissions service facilitating access to tertiary education and further study opportunities and pathways for learners in Victoria and beyond. Formed in 1967 and incorporated as a company by limited guarantee in 2023, VTAC is a not-for-profit organisation and a member of the Australasian Conference of Tertiary Admission Centres (ACTAC).
John Kinley Dewar is an Australian academic. He served as the vice-chancellor of La Trobe University from 2012 to 2024 and is currently the Interim vice-chancellor of University of Wollongong from June 2024.
The Queensland Tertiary Admissions Centre (QTAC) is a non-profit organisation that provides undergraduate and postgraduate tertiary entry and application services for 17 major universities and tertiary education institutions in Queensland and northern New South Wales. QTAC is funded entirely by student application fees.
Margaret Elaine Gardner is an Australian academic, economist and university executive serving as the 30th and current governor of Victoria since August 2023. She was previously the vice-chancellor of Monash University from 2014 to 2023 and the president and vice-chancellor of RMIT University from 2005 to 2014.
Parade College is a private Catholic secondary school for boys. It is located across two campuses in the northern suburbs of Melbourne, Victoria, Australia; one at Bundoora; the other, 8 km (5.0 mi) away, at Preston. The school is a member of Edmund Rice Education Australia and the Associated Catholic Colleges.
Tertiary education in Australia is formal education beyond high school in Australia, consisting of both government and private institutions and divided into two sectors; Higher Education and Vocational Education and Training (VET) provided by government-owned TAFEs & private Registered Training Organisations (RTO). Australian Qualifications Framework (AQF), the Australian national education policy, classifies tertiary qualification into 10 levels: level 1 to 4 vocational certificates ; level 5 & 6 undergraduate diploma and advanced diploma; level 6 associate degree; level 7 bachelor degree, level 8 bachelor honours degree & graduate certificates and graduate diplomas; level 9 for master's degree; and level 10 PhD. Most universities are government owned and mostly self-regulated. For other institutes there are two national regulators for tertiary education for registration, recognition and quality assurance of both the "provider institutes" as well as the "individual courses" provided by the providers. Tertiary Education Quality and Standards Agency (TEQSA) regulates institutes which provide education from level 5 or above. Australian Skills Quality Authority (ASQA) regulates institutes which provide education from level 1 to level 6.
The Universities Admissions Centre is an organisation that processes applications for admission to tertiary education courses, mainly at institutions in New South Wales and the Australian Capital Territory. A not-for-profit company incorporated in July 1995, it has offices located at Sydney Olympic Park.
Education in Victoria, Australia is supervised by the Department of Education and Training, which is part of the State Government and whose role is to "provide policy and planning advice for the delivery of education". It acts as advisor to two state ministers, that for Education and for Children and Early Childhood Development.
Fraser International College (FIC) is situated in Burnaby, British Columbia, Canada, and commenced its operations in September 2006.
Studios 301 is an Australian recording studio and is both the longest-running professional recording studio in the southern hemisphere and the largest studio complex in Australia.
Edith Cowan College (ECC), previously known as Perth Institute of Business and Technology, is an Australian tertiary education provider in Perth, Western Australia and is accredited by Government under the Higher Education Act 2004 to provide a range of higher education courses. Edith Cowan College has been in partnership with Edith Cowan University (ECU) since 1994. Since then over 9,000 students have successfully transitioned into Edith Cowan University.
Curtin College is a college located on the main campus of Curtin University in Perth, Western Australia. It is an Australian tertiary education provider and an integrated pathway provider to Curtin University.
AIT, Academy of Interactive Technology is a specialist higher education and vocational education institution based in Sydney, with a second campus opening in Melbourne, Australia in 2015. AIT was established in 1999, and specialises in three disciplines: digital media, information technology, and business. AIT is a member of the NextEd group, alongside Greenwich English College, Go Study Australia, and the International School of Colour and Design (ISCD). AIT was the first in Australia to offer courses in Motion capture technology, and has the latest markerless Motion Capture system installed in its Sydney campus, in 2013, AIT was still the first Mobile Applications Development course provided. AIT holds and participates in many events, including the AIT Oscar Night, the AIT Games Night, and the Vivid Light Festival.
Celeste Liddle is an Aboriginal Australian unionist, writer, and Indigenous feminist of the Arrernte people of Central Australia. Having first risen to prominence via her personal blog, Rantings of an Aboriginal Feminist, Liddle has written opinion and commentary for several media publications and anthologies.
Dr Sylvia Jane Walton, was chancellor of La Trobe University (2006–2011), principal of Tintern Grammar (1982–2005) and principal of St Catherine's School from 2007 to 2013.
BGH Capital (BGH) is an Australian private equity company established in 2017 by Robin Bishop, Ben Gray, and Simon Harle. BGH is headquartered in Melbourne and is owned and managed by its founding partners.
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